Do you need cash? It may sound odd but you can lend money to yourself. Life insurance loan allows you to do so. Before you dismiss this as yet another click-bait article, I want you to keep an open mind and read on. Because this strategy may be extremely useful in your wealth building journey.
In various stages of life, we may face cash flow problems. Sometimes the money woe may be due to a loved one incurring unforeseen massive hospital bills due to an accident or it could be the purchase of a big-ticket item like a new house which requires substantial hard cash for down-payment and renovation expenses.
Whatever the case, we are likely to encounter phases of life whereby we may need some financial help. In this article, I would share how you can lend money to yourself through insurance loans.
As a general principle, I would not encourage readers to borrow unnecessarily. We should all live within our means. But recent events made me realize the vulnerability of many low-income families in Singapore. I read an article of a security guard who suffered from a massive heart attack and thereafter struggled to pay hospital bills amounting to a staggering $78,000. Faced with such financial disaster, it is difficult to imagine how the poor and needy can crawl their way out of the holes without financial aids.
According to Ministry of Law’s Insolvency Office, 1253 bankruptcy orders were made in Singapore this year. This is an average of about 140 people being made bankrupt per month. You would want to avoid bankruptcy because there are a lot of restrictions and you may also face difficulties in looking for a job. In Singapore, being a bankruptee is also a mark of social disgrace and the stigma is incredibly huge.
But then again, Singapore is a [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
Read my other related articles:
- Is gold a long-term insurance?
- Understanding the Difference Between Critical and Terminal Illness for Insurance
- Health Insurance
- Insurance: Blood in Urine
- Traded Life Insurance Policies in Singapore
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